Making my hobby my business

S

studiobri

New member
Hey guys, my name is Brad and I own a recording studio in Narragansett, RI. I have been recording for about 10 years now as a hobby and am making the switch from hobbyist to business. I am wondering who else has done this, and what advise you can give me as far as getting it legal tax wise and where I can find more information. I searched the forum a little but was not able to find any threads on this topic, so if there is something on here already a link would be greatly appreciated.

Thanks again,
Brad
 
I think more important than tax info would be the amount of work you expect to have...unless you don't need it to be profitable, and are willing to work it as a labor of love...and you have some other source of income to help with the bills.
 
miroslav said:
I think more important than tax info would be the amount of work you expect to have...unless you don't need it to be profitable, and are willing to work it as a labor of love...and you have some other source of income to help with the bills.
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Damn good thing I have a business that makes enough money to afford my 'labor of love'. The studio is just my really friggen expensive hobby.

Maybe someday.... lol!
 
mjbphotos said:
Tax-wise? Get a tax pro for that (CPA?), don't ask on an internet forum!
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Yeah, we call them accountants over here and anyone with a business is a fool if they do not employ one (this is especially so here with the new Work Pension scheme. Looks like being a bloody nightmare!).

I was involved (technically, not financially) with a small AV business many years ago. They had a small recording setup, Teac A3440, B77s) but 99.5% of the work is boring ***t, very rarely do you get to record anything you like! AGMs, AmDrams, (tho the gals there can be fun!) and Gang Shows.

Your soul will die.

Dave.
 
studiobri said:
Hey guys, my name is Brad and I own a recording studio in Narragansett, RI. I have been recording for about 10 years now as a hobby and am making the switch from hobbyist to business. I am wondering who else has done this, and what advise you can give me as far as getting it legal tax wise and where I can find more information. I searched the forum a little but was not able to find any threads on this topic, so if there is something on here already a link would be greatly appreciated.

Thanks again,
Brad
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Don't do it. DO NOT DO IT. You wanna kill your love for your hobby? Make it your job.
 
Greg_L said:
Don't do it. DO NOT DO IT. You wanna kill your love for your hobby? Make it your job.
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So true. I know many people who do music for a living, let's just say it is hard to talk music with them any more.
 
Loads of people advise NOT having an accountant - but my first one told me he would guarantee to save me more than he charged me, and he did. My second accountant I like more because I can talk to him properly, the first always looked down a little which I didn't like.

My hobby became my job, and giving up a 35 grand a year job for a guaranteed zero is VERY scary. However, I have been able to pa my mortgage off, and although not rich, I can honestly say I enjoy what I do.
 
rob aylestone said:
Loads of people advise NOT having an accountant - but my first one told me he would guarantee to save me more than he charged me, and he did. My second accountant I like more because I can talk to him properly, the first always looked down a little which I didn't like.

My hobby became my job, and giving up a 35 grand a year job for a guaranteed zero is VERY scary. However, I have been able to pa my mortgage off, and although not rich, I can honestly say I enjoy what I do.
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Yeah! You need the guys here at least. Income tax, VAT, pensions, insurance (don't even THINK of opening your place to Joe Pub without £m third part!) .

I have never had the guts to go off PAYE but I know many builders, chippies, lekkies and service guys who have and the ones that did not pay for a money man tended to regret it.

Dave.
 
I opened a recording studio many years ago with three friends. We didn't have an accountant. We wrote off all the gear we owned, because that seemed smart, and we were all musicians with lots of gear. What we essentially did, without realizing it, was donate all our stuff to the business, and when we wound the business down, we were audited - and they said you took this stuff out of the business, so you need to pay income tax on it.

So, yes, get an accountant. It's really good to know what you're not driving into a ditch.
 
RickWaugh said:
I opened a recording studio many years ago with three friends. We didn't have an accountant. We wrote off all the gear we owned, because that seemed smart, and we were all musicians with lots of gear. What we essentially did, without realizing it, was donate all our stuff to the business, and when we wound the business down, we were audited - and they said you took this stuff out of the business, so you need to pay income tax on it.

So, yes, get an accountant. It's really good to know what you're not driving into a ditch.
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That is a good story for a good lesson.
 
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